Global Funds Lighten Up on China

Anticipating a Bubble Bust,
Positions Shift to Neutral

International fund managers lowered their exposure to China in May, moving to a neutral position from slightly overweight, while the country's stock markets continued their surges to records.

Meanwhile, China is allowing some of its big investors to rechannel more money into other markets. Chinese regulators yesterday said they plan to widen the scope of overseas investment for insurance companies soon, a move that will allow insurers to put funds into New York-listed and London-listed stocks later this year.